HB 0992 - Income Tax - Earned Income Tax Credit - Alteration and Sunset Repeal

HB 0992 - Income Tax - Earned Income Tax Credit - Alteration and Sunset Repeal

Position: Support

Committees: House Ways & Means

The Maryland Catholic Conference (“Conference”) represents the public policy interests of the three Roman Catholic (arch)dioceses serving Maryland: the Archdiocese of Baltimore, the Archdiocese of Washington, and the Diocese of Wilmington.

House Bill 992 alters, for a taxable year beginning after December 31, 2022, the percentage of the federal earned income tax credit used for determining the amount that an individual may claim as a refund under the Maryland earned income tax credit; repealing, for a taxable year beginning after December 31, 2021, a certain limitation on the amount certain individuals may claim as a refund under the credit; allowing certain residents to continue to claim the credit for taxable years beginning after December 31, 2022.

The Maryland Catholic Conferences supports policies that protect human life and dignity, strengthen families, encourage and reward work, preserve a safety net for the vulnerable, and build public/private partnerships to overcome poverty. Further, we have been a strong supporter of the refund ability and expansion of the Earned Income Tax Credit particularly because of their effectiveness in helping families escape or prevent poverty and offer essential resources for raising children. Maryland is one of the 28 states that values their hard-working, low-income citizens by offering a state version of the EITC. This credit is one of the most powerful anti-poverty tools utilized by federal, state, and local governments. Research shows it substantially benefits women and communities of color and helps keep people engaged in the workforce. Unfortunately, many people’s ability to stay connected to the workforce is threatened. Right now, many low-paid workers are fighting to gain or maintain financial security and refundable tax credits are a critical tool for supporting them.

For these reasons, the Conference appreciates your consideration and urges a favorable report on House Bill 992.